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Activist Hedge Fund Urges Aareal to Weigh Software Unit Sale

  • Teleios Capital makes case for review in letter to bank board
  • Review should consider full or partial sale, spinoff: Teleios
Head Office of Aareal Bank AG in Wiesbaden

Head Office of Aareal Bank AG in Wiesbaden

Photographer: Joerg Puchmueller/Aareal Bank AG 

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Activist hedge fund Teleios Capital Partners called on German lender Aareal Bank AG to look into selling its software unit.

Teleios, which owns about 3.4% of commercial real estate lender Aareal, said the software unit Aareon is a very different business than its parent, and without separate ownership it’s “in danger of failing to achieve its full potential.” The hedge fund made its case to the Aareal board in a Sept. 26 letter seen by Bloomberg.